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One step closer to Federal California Milk Marketing Order

 

California dairy farmers are one step closer to having a Federal Milk Marketing Order.

The USDA this week ratified the request by three of the state’s dairy cooperatives to replace California’s state marketing order with one at the federal level. With the ratification is complete, USDA will proceed with issuing a final decision.

Federal Orders provide greater price stability by establishing a minimum price and insure consumers an adequate supply of milk.

There are currently 10 Federal Milk Marketing Orders which market about 60 percent of U.S. milk.

A report by RaboResearch says a federal order would slightly increase the milk price in California and stabilize production. Analysts say it would also give more flexibility to processors.